September 2009

A recent Insurance Journal article reported that farm fatalities in the state of Indiana increased in 2008 for the second year in a row. This increase follows three decades of declines. The information was developed from the Purdue University's Agricultural Safety and Health Program. In 2006, 8 farm related fatalities were recorded in the state, the lowest since Purdue University began to keep records in the 1940s.

The top two causes of farm related deaths were tractor rollovers and machinery crushings or pinnings. The Purdue Report includes several recommendations for safety measures that farmers can take.

Avoid working when tired. Farmers should take frequent breaks and get enough sleep.

Keep all equipment shields in place. If a shield is removed to work on something, be sure to put it back on.

Use all safety locks and safety equipment. Don't override safety locks thinking they will slow down productivity.

Use tractors with rollover protective structures.

Make sure the slow-moving vehicle emblem is visible and in good condition on all tractors and equipment.

Use hazard lights when operating tractors and equipment on roadways.

Additional farm safety information can be found at the following websites:

www.cdc.gov/niosh/nasd/nasdhome/html

http://www.abe.iastate.edu/safety/

www.agsafety.psu.edu

The report coincides with National Farm Safety and Heath Week, September 20th - 26th. Additional information on Farm Safety and Health Week can be found in the Agricultural Safety Section of the National Safety Council's website: http://www.nsc.org/resources/issues/agrisafe.aspx

About the Author: Craig Welsh is an Executive in the Agribusiness Division of Westfield Insurance. He oversees Westfield's Agribusiness operation that focuses on insuring all segments of agriculture (farming and agribusiness customers) in all 19 active states. Craig has worked in a variety of underwriting and management functions over the past 16 years with Westfield. Craig has completed both the CPCU (Chartered Property and Casualty Underwriter) and AFIS (Agribusiness and Farm Insurance Specialist) Designations. He has an undergraduate degree in Economics from West Virginia Wesleyan College and a Masters Degree in Insurance Management from Boston University.

EPA Announces Guidance to Communities on PCBs in Caulk of Buildings Constructed or Renovated Between 1950 and 1978

The U.S. Environmental Protection Agency today announced a series of steps that building owners and school administrators should take to reduce exposure to PCBs that may be found in caulk in many buildings constructed or renovated between 1950 and 1978. The agency is also conducting new research to better understand the risks posed by caulk containing PCBs. This research will guide EPA in making further recommendations on long-term measures to minimize exposure as well as steps to prioritize and carry out actions to remove the caulk to better protect public health.

Polychlorinated biphenyls, or PCBs, are man-made chemicals that persist in the environment and were widely used in construction materials and electrical products prior to 1978. PCBs can affect the immune system, reproductive system, nervous system and endocrine system and are potentially cancer-causing if they build up in the body over long periods of time.

"PCBs have been banned for the last 30 years for most uses," said EPA Administrator Lisa P. Jackson. "But unfortunately high levels of PCBs are present in many buildings and facilities constructed prior to the PCB ban, including most recently some schools. We’re concerned about the potential risks associated with exposure to these PCBs and we’re recommending practical, common sense steps to reduce this exposure as we improve our understanding of the science. For building owners and administrators who want to take added and more aggressive immediate steps, EPA is providing additional guidance to help them identify the extent of potential risks and determine whether mitigation steps are necessary. Local communities and governments have constrained resources that make this a particularly challenging and sensitive situation."

The agency has created a website,

http://www.epa.gov/pcbsincaulk, with updated information on this issue. Concerned parties can also call an EPA hotline toll free at 1-888-835-5372.

It may seem strange to be discussing driver recruiting right now, given the state of the economy, and the lower volumes of freight. In fact, very few companies probably have the hiring of drivers currently on their minds. However, there are some indications that rebounds of the economy are not too distant, which in turn, results in the potential for increased freight movement. Obviously, the potential for adding drivers may follow. A few years back, when asking about the criteria many companies used for hiring drivers, it wasn't uncommon to get the response (jokingly of course) "if they have a heartbeat, we need 'em". It seems that due to the incredible shortage of drivers at the time, companies were willing to make sacrifices in driver quality, in order to fill the driver's seat.

Fast forward a few years, add a substantial economic downturn, and a driver surplus was noted. Many in the industry feelthat this increased the potential for being more selective in that there were more drivers looking for work (as companies scaled back, sold off equipment or lost routes / customers). What often is not considered is the possibility that maybe the best drivers were retained, and that the quality of driver actually had not increased at all. Either way, driver selection is both difficult, and critical to the success of an organization. As our economy slowly begins to rebound in the future, it's important that companies not slip into the mode of hurried hiring, or taking what they can get in regards to available drivers.

It's a good idea to plan now so that hiring practices won't be compromised. Not only should plans be in place for determining the ideal candidate, but the organization should be analyzing itself to determine ways to make it the most desirable place to work for potential candidates.

Consider the following in your recruiting efforts:

Identify what the organization determines to be an acceptable driving record, and put it in writing. Studies show that the number of violations on a driving record has a direct correlation to accident probability. Addressing this up front can help save time and expense during the hiring process.

Identify the types of violations that will exclude a driver from being considered. Obvious examples could be DUI, Fleeing the scene of an accident, reckless operation, etc.

Interview employees who have left your company. Surveying your (past & present) employees can help shed some light on why turnover in your own organization occurs. This can allow an opportunity to address these issues and make your organization more attractive to potential employees.

In tough economic times, lowering the cost of doing business is one of the obvious goals of management. Revenues dry up while competition heats up. What’s more- costs of materials, labor, etc. typically do not immediately follow. The end result of course is lowering profit margins. It’s been said that “happiness is survival” in a recession.

Protecting your company from the risk of undesirable loss/injury is often one of the first items to be slashed. Over the past year, I personally know of several Safety Directors/ Risk Managers that have lost their jobs. Is this because the company they worked for now has that much lower risk? Often the case is just the opposite. Remaining employees at the business are called on to be more productive (translation: work faster, longer hours, increased stress). This increases the risk to injury as employees become tired quicker, begin to take shortcuts, etc. It is at this time that management should actually invest in loss prevention in order to not only whether the downturn but positions themselves for a better economy (which will mean adding employees, etc.).

Why? There are many reasons, but from purely a financial standpoint here are a couple terms I wish to mention:

vCost of a loss:The cost of a loss directly impacts a company’s bottom line. Worker’s Compensation premiums increase after a loss. In fact, the cost of premiums are factored into the premium on a rolling three year average (via the state rate bureau (e.g. see http://www.ncrb.org/ncorg). Not only are there premium increases (also known as direct costs), there are indirect costs to people (injured employee and possibly others, management time, re-training, etc.); material (material/product damage); and possible equipment damage (e.g. slowing production). Studies have shown that these costs are estimated at three to five times those direct costs (e.g. insurance premiums). Per the Bureau of Labor Statistics (BLS), the average medical-attention only injury is ~$2,000 dollars while the average lost-time case (which takes 2.71 years to pay full compensation of that case) is ~15,000 dollars.

vReturn on Income:The cost of a loss/injury means little unless we take it one step further and translate it into what it will take in terms of sales/revenues to pay for that injury. Take that lost-time injury average ($15,000) noted above. If a company sells a product and the profit margin is 5% (which is fairly generous), it will take $300,000 dollars in sales to pay for that loss. In addition, if those indirect costs are added in- say at a conservative 3 times that of direct costs, the amount of sales increases to $1.2 million of sales to cover those costs. So the question is how much product must be sold to cover the cost of that single average lost-time injury?

This is not real…right?It’s just slick accounting, isn’t it? Well…. No. It’s real alright. The numbers will vary depending on the variables of a specific business model, but the point is still valid- when losses occur, there are very high costs associated with those losses.

In a recent article published online on http://ohsonline.com, more than half the nurses surveyed reported experiencing workplace violence during their work shift. The violence was categorized by situations where they were "spit on," "hit," "pushed or shoved," "scratched," and "kicked."

Another alarming statement from the article - One in four has reported experiencing such violence more than 20 times in the past three years. Just as alarming, one in five nurses have experienced verbal abuse more than 200 times during the same period.

Although many of the reasons were related to drug and alcohol abuse by patients and psychiatric patients being treated in the emergency room, some of the workplace violence was due to the perceived shortage of nurses in the medical facility/emergency room.

The article goes on to address the fact the risk of experiencing workplace violence was lower for nurses who worked in facilities that had policies for reporting violence. And this statement begs the questions ... What is your company's policy regarding Workplace Violence? Has your company reviewed that policy with all salary and hourly personnel, as well as those who may work under temporary circumstances? How safe and secure is your place of employment from others who can enter your facility meaning to do harm?

The fact is no place is exempt from the potential for workplace violence. OSHA has some guidelines not only for the medical industry but also for general industry. For a Fact Sheet for general industry on how to protect you and your company from Workplace Violence, go to www.osha.gov .

A video addressing workplace violence can be found on the www.crisisprevention.com website. This website also provides additional tips on how to protect employees, and a free handbook.

While preparing presentations for one of our agency customers I assembled the information listed below. This is a compilation of various resources that provide a wealth of beneficial information on the agriculture and landscaping industries. These websites provide information related to business operations, safety, and risk control.

National Fire Protection Association – www.nfpa.org Organization dealing with fire and life safety including codes & standards, research, training and education – National Fire Codes are available for sale

NOTE: Check with local and state agencies for specific resources or requirements in your areas of operation.

About the Author: David Yeager is a Sr. Risk Control Representative in Westfield Insurance’s Lancaster, PA Service Office. Dave has a B.S. Fire Prevention & Control/ Industrial Risk Management from Eastern Kentucky University and over 23 yrs of safety and risk control experience. He has served as a firefighter and fire inspector with departments in 3 states.

Combustible dust is comprised of fine particles that can stay suspended in air and under the right conditions will cause an explosion. Combustible dusts can be found in many manufacturing situations and can occur from a variety of different particles, including aluminum, wood, pharmaceuticals and grain.

The U.S. Chemical Safety and Hazard Investigation Board (CSB) identified 281 combustible dust incidents between 1980 and 2005 that led to the deaths of 119 workers, injured 718, and extensively damaged numerous industrial facilities. On February 7, 2008, a sugar dust explosion and subsequent fire at a sugar refinery in Port Wentworth, Georgia, caused 14 deaths and left many other workers seriously injured with severe burns.

In order to keep your employees safe there are key steps you can take that will reduce the likelihood of a disaster.

Understand the hazards of the products that you are using in your facility. Review Material Safety Data Sheets (MSDS) for all products and ensure that employees know the hazards of each product. Do not assume that a product is not hazardous just because it is not a liquid or gas.

Develop and implement a maintenance schedule that ensures all bearings on conveyors and other equipment are greased to prevent overheating.

Make housekeeping a priority. Don't forget to clean fan blades used in ventilation systems and in motors and a build up of dust on the blades can cause them to become unbalanced, which could result in a spark. Be sure to remove dust from the tops of ductwork and pipes, and keep floors swept free of dust.

Ensure that dust collection systems and ductwork are maintained in good working order. The systems should be equipped with spark arrest systems which will help to prevent an explosion.

Train employees how to respond if an incident does occur. Post numbers for local emergency responders, including 911.

Ensure that all ignition producing items (such as light switches, motors, and lights) in the area where the dust occurs are designed for that type of atmosphere.

OSHA recently released an article on the topic of combustible dust and how it relates to the Hazard Communication Standard. The article provides information on what constitutes a combustible dust, the 5 elements needed for a combustible dust explosion, what to look for on an MSDS sheet, and more. A link to this article can be found below.

The CSB has also released a video that is approximately 29 minutes and that would work well for a short safety meeting. The video talks about several different explosions that have occurred over the past few years and what caused them, as well as how to prevent this from occuring in the future. A link to this video can be found below.

The last two articles talk about prevention of combustible dust explosions and offer tips on how to reduce the chances of this occurring at your facility.